Noodles & Company Announces Second Quarter 2013 Financial Results

Noodles & Company Announces Second Quarter 2013 Financial Results

BROOMFIELD, Colo., Aug. 8, 2013 (GLOBE NEWSWIRE) -- Noodles & Company
(Nasdaq:NDLS) today announced financial results for the second quarter ended
July 2, 2013.

Key highlights for the second quarter of 2013 compared to the second quarter
of 2012 include:

  *Total revenue increased 18.2% to $89.2 million from $75.5 million.
  *Comparable restaurant sales increased 4.7% for company-owned restaurants,
    2.3% for franchise restaurants and 4.4% system-wide.
  *Restaurant contribution margin increased 40 basis points to 21.3%.
  *Adjusted net income(1) increased 35.6% to $4.0 million or $0.13 per
    diluted share, from $2.9 million.
  *GAAP Net income was $0.1 million, compared to net income of $2.2 million.
  *13 new restaurants opened system-wide, including 11 company-owned and two
    franchised restaurants.

Key highlights for the first two quarters of 2013 compared to the first two
quarters of 2012 include:

  *Total revenue increased 17.3% to $170.5 million from $145.4 million. 
  *Comparable restaurant sales increased 3.5% for company-owned restaurants,
    0.2% for franchise restaurants, and 3.0% system-wide.
  *Restaurant contribution margin decreased 40 basis points to 20.0%.
  *Adjusted net income(1) increased 11.0% to $5.4 million from $4.8 million,
    or $0.18 per diluted share.
  *GAAP Net income of $1.0 million, or $0.04 per diluted share, compared to
    net income of $3.5 million.
  *22 new restaurants opened system-wide, including 20 company-owned and two
    franchised restaurants.

(1) Adjusted net income is a non-GAAP measure. A reconciliation of US GAAP net
income to adjusted net income is included in the accompanying financial data.
See "Non-GAAP Financial Measures" below.

Kevin Reddy, Chairman and Chief Executive Officer of Noodles & Company,
remarked: "We are pleased with our second quarter results, as our team's
efforts in creating a dining experience that we are proud of allowed us to
complete our 15^th consecutive quarter and 29 out of 30 quarters of positive
comparable restaurant sales growth. Our EPS growth on adjusted net income of
35.6% was the result of continued hard work to bring our 'Your World Kitchen'
positioning to life within our restaurants while expanding the brand through
the opening of 13 additional restaurants system-wide. Moreover, the execution
of our initial public offering on July 2^nd has allowed us to pay off nearly
all of our outstanding debt, giving us the capital flexibility to pursue our
strategy of developing a 'Category of One' in the eating and drinking out
space."

Initial Public Offering

On July 2, 2013, we completed our initial public offering ("IPO") of our Class
A common stock at $18.00 per share. We issued 6,160,714 shares, including
803,571 shares sold to the underwriters pursuant to their over-allotment
option. After underwriter discounts and commissions and offering expenses, net
proceeds from the offering were $100.2 million. These proceeds were used to
repay all but $0.2 million of our outstanding debt as of July 2, 2013.

Second Quarter 2013 Financial Results

Revenue Growth of 18.2%

Total revenue increased $13.7 million in the second quarter of 2013, or 18.2%,
to $89.2 million, compared with $75.5 million in the second quarter of 2012.
This increase was the result of 58 net restaurants opened system-wide since
the beginning of the second quarter of 2012, comparable restaurant sales
growth and the calendar shift of the Easter holiday, on which we are closed,
from the second quarter of 2012 to the first quarter of 2013.

In the second quarter of 2013, comparable restaurant sales increased 4.7% for
company-owned restaurants, 2.3% for franchise restaurants and 4.4%
system-wide. Adjusted for the impact of approximately 0.8% due to the
aforementioned holiday shift, company-owned, franchise, and system-wide
comparable restaurant sales were 3.9%, 1.5% and 3.6%, respectively.

The company-owned comparable restaurant sales increase of 4.7% in the second
quarter fiscal 2013 was comprised of a traffic increase of 2.4% and an
increase in per person spend of 2.3%.

Adjusted Net Income(2) Growth of 35.6%

Net income was $0.1 million in the second quarter of 2013, compared with net
income of $2.2 million in the second quarter of 2012.Adjusted net income
increased 35.6% to $4.0 million, primarily due to increased revenue and
expansion of restaurant contribution. We define adjusted net income as net
income plus a net savings in interest expense as a result of the pay down of
debt using IPO proceeds, plus IPO related expenses and pre-IPO management
fees, less estimated incremental costs of being a public company and the tax
effects of these adjustments.

Restaurant contribution margin increased to 21.3% in the second quarter of
2013, compared with 20.9% in the second quarter of 2012. This increase was
primarily driven by a reduction in food costs as a percentage of restaurant
revenue, partially offset by an increase in labor percentage due to a larger
percentage of restaurants in the non-comparable base.

Adjusted EBITDA(2) increased 24.1% in the second quarter of 2013 to $12.6
million, an increase of $2.4 million from the second quarter of 2012.

First Two Quarters 2013 Financial Results

Revenue Growth of 17.3%

Total revenue increased $25.1 million in the first two quarters 2013, or
17.3%, to $170.5 million, compared with $145.4 million in the same period of
2012. This increase was the result of 64 net restaurants opened system-wide
since the beginning of the first quarter of 2012 and comparable restaurant
sales growth. Comparable restaurant sales increased 3.5% for company-owned
restaurants, 0.2% for franchise restaurants and 3.0% system-wide.

Adjusted Net Income(2) Growth of 11.0%

Net income was $1.0 million for the first two quarters of 2013, compared to
net income of $3.5 million in the same period of 2012.Adjusted net income
increased 11.0% to $5.4 million, primarily due to increased revenue and
expansion of restaurant level restaurant contribution. We define adjusted net
income as net income plus a net savings in interest expense as a result of the
pay down of debt using IPO proceeds, plus IPO related expenses and pre-IPO
management fees, less estimated incremental costs of being a public company
and the tax effects of these adjustments.

Restaurant contribution margin was 20.0% as a percentage of restaurant revenue
in the first two quarters of 2013, compared with 20.4% in the same period of
2012 due primarily to higher labor costs and higher costs of sales as a
percentage of restaurant revenue.

Adjusted EBITDA(2) increased 14.8% in the first two quarters of 2013 to $20.8
million, an increase of $2.7 million from the first two quarters of 2012.

(2) Adjusted net income and Adjusted EBITDA are non-GAAP measures. A
reconciliation of US GAAP net income to each of these measures is included in
the accompanying financial data.See "Non-GAAP Financial Measures."

2013 Outlook

Management currently anticipates adjusted diluted net income per share between
$0.39 and $0.41 for the full year of 2013. This compares to adjusted diluted
net income per share of $0.31 in 2012. This guidance is based, in part, on the
following assumptions for fiscal year 2013:

  *40 to 42 new company-owned restaurant openings, net of one closure in
    first quarter of 2013
  *Six to eight new franchise restaurant openings
  *Comparable restaurant sales growth of approximately 3.0%
  *An effective full year tax rate of 39.2%
  *Capital expenditures of approximately $44 million to $48 million
  *Annual weighted average adjusted diluted shares outstanding of 30.3
    million to 30.7 million
  *Comparable adjustments to net income as discussed in "Reconciliations of
    Non-GAAP Measurements to US GAAP Results"

Key Definitions:

Comparable Restaurant Sales represent year-over-year sales comparisons for
restaurants open for at least 18 full periods.

Per Person Spend represents restaurant sales divided by traffic. Traffic
represents the approximate number of entrees sold.

Restaurant Contribution Margin represents restaurant revenue less restaurant
operating costs which are costs of sales, labor, occupancy and other
restaurant operating costs.

Adjusted EBITDA represents net income before interest expense, provision
(benefit) for income taxes, asset disposals, closure costs and restaurant
impairments, depreciation and amortization, stock-based compensation,
management fees and other non-recurring expenses. Adjusted EBITDA is presented
because: (i) management believes it is a useful measure for investors to
assess the operating performance of our business without the effect of
non-cash charges such as depreciation and amortization expenses and asset
disposals, closure costs and restaurant impairments and (ii) management uses
it internally as a benchmark for certain of our cash incentive plans and to
evaluate our operating performance or compare performance to that of the
competitors.See "Non-GAAP Financial Measures" below.

Adjusted Net Income represents net income plus a net savings in interest
expense as a result of the pay down of debt using IPO proceeds, plus IPO
related expenses and pre-IPO management fees, less incremental costs of being
a public company and the tax effects of these adjustments. Adjusted net income
is presented because management believes it helps convey supplemental
information to investors regarding the Company's performance excluding the
impact of the IPO and other special items that affect the comparability of
results in past quarters and expected in future quarters. See "Non-GAAP
Financial Measures" below.

Conference Call

Noodles & Company will host a conference call to discuss the second quarter
financial results on Thursday, August 8, 2013 at 4:30 PM Eastern Time.

The conference call can be accessed live over the phone by dialing (877)
303-1298 or for international callers by dialing (253) 237-1032. A replay will
be available after the call and can be accessed by dialing (855) 859-2056 or
for international callers by dialing (404) 537-3406; the passcode is 22485068.
The replay will be available until Thursday, August 22, 2013. The conference
call will also be webcast live from the Company's corporate website at
investor.noodles.com. An archive of the webcast will be available through the
corporate website shortly after the call has concluded until Thursday, August
22, 2013.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and
presented in accordance with Generally Accepted Accounting Principles (GAAP),
the Company uses the following non-GAAP financial measures: adjusted EBITDA,
adjusted net income and adjusted EPS (collectively the "non-GAAP financial
measures"). The presentation of this financial information is not intended to
be considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP. The
Company uses these non-GAAP financial measures for financial and operational
decision making and as a means to evaluate period-to-period comparisons. The
Company believes that they provide useful information about operating results,
enhance the overall understanding of past financial performance and future
prospects, and allow for greater transparency with respect to key metrics used
by management in its financial and operational decision making. Adjusted net
income is presented because management believes it helps convey supplemental
information to investors regarding the Company's performance excluding the
impact of the IPO and other special items that affect the comparability of
results in past quarters and expected in future quarters, such as the
adjustment to eliminate the historical interest expense for all periods
presented that were based upon actual outstanding balances before the
application of the net proceeds from our IPO. The non-GAAP measures used by
the Company in this press release may be different from the methods used by
other companies.

For more information on the non-GAAP financial measures, please see the
Reconciliation of GAAP to non-GAAP Financial Measures tables in this press
release. These accompanying tables have more details on the GAAP financial
measures that are most directly comparable to non-GAAP financial measures and
the related reconciliations between these financial measures.

About Noodles & Company

Founded in 1995, Noodles & Company is a fast-casual restaurant chain that
serves classic noodle and pasta dishes from around the world with 348
locations system-wide in 26 states and the District of Columbia as of July 2,
2013. Known as Your World Kitchen, Noodles & Company's globally inspired menu
consists of more than 25 fresh, customizable noodle bowls, salads, soups and
sandwiches that are prepared quickly using quality ingredients. From healthy
to indulgent, spicy to comforting, the menu provides favorites for everyone
from kids to adults. Popular dishes include the sweet and spicy Japanese Pan
Noodles, zesty Pesto Cavatappi and creamy Wisconsin Mac & Cheese.

Forward-Looking Statements

This press release contains a number of forward-looking statements.Words, and
variations of words, such as "believe," "estimate," "anticipate," "expect,"
"intend," "may," "will," "would" and similar expressions are intended to
identify our forward-looking statements. Examples of forward-looking
statements include all matters that are not historical facts, statements
regarding 2013 guidance, comparable restaurant sales and operating margins,
new restaurant development, expected public company expense, and our outlook,
in particular, our target and adjusted net income, targeted restaurant
openings and effective tax rate. By their nature, forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from the Company's forward-looking statements. These risks and
uncertainties include: our ability to maintain increases in comparable
restaurant sales and to successfully execute our growth strategy; current
economic conditions; price and availability of commodities; consumer
confidence and spending patterns; the assumptions used in the adjustment of
interest expense and the adjustments for certain incremental legal,
accounting, insurance and other compliance costs used in the calculation of
adjusted net income; changes in consumer tastes and the level of acceptance of
the Company's restaurant concepts (including consumer acceptance of prices);
consumer reaction to public health issues and perception of food safety;
seasonal factors; and weather.For additional information on these and other
factors that could affect the Company's forward-looking statements, see the
Company's risk factors, as they may be amended from time to time, set forth in
its filings with the SEC, including our final prospectus filed June 28,
2013.The Company disclaims and does not undertake any obligation to update
or revise any forward-looking statement in this press release, except as may
be required by applicable law or regulation.

Noodles& Company
Consolidated Statements of Income
(in thousands, except share and per share data, unaudited)
                                                               
                             Fiscal Quarter Ended     Two Fiscal Quarters
                                                       Ended
                             July2,      July3,     July2,     July3,
                              2013         2012        2013        2012
Revenue:                                                        
Restaurant revenue            $88,362    $74,757   $168,880  $143,955
Franchising royalties and     877          737         1,639       1,427
fees
Total revenue                 89,239       75,494      170,519     145,382
Costs and expenses:                                             
Restaurant operating costs
(exclusive of depreciation                                      
and amortization shown
separately below):
Cost of sales                 23,096       19,947      44,397      38,177
Labor                         26,289       22,184      51,119      42,937
Occupancy                     8,595        7,265       16,954      14,201
Other restaurant operating    11,575       9,711       22,635      19,264
costs
General and administrative(1) 12,646       6,217       19,881      12,659
Depreciation and amortization 5,035        4,099       9,836       7,831
Pre-opening                   769          590         1,690       1,171
Asset disposals, closure
costs and restaurant          297          282         498         462
impairments
Total costs and expenses      88,302       70,295      167,010     136,702
Income from operations        937          5,199       3,509       8,680
Interest expense              1,014        1,492       2,067       2,776
Income (loss) before income   (77)         3,707       1,442       5,904
taxes
Provision (benefit) for       (145)        1,527       450         2,433
income taxes
Net income                    $68        $2,180    $992      $3,471
Earnings per share of ClassA
and ClassB common stock,                                       
combined:
Basic                         $—         $0.09     $0.04     $0.15
Diluted                       $—         $0.09     $0.04     $0.15
Weighted average ClassA and
ClassB common stock                                            
outstanding, combined:
Basic                         23,509,781   23,238,984  23,374,383  23,238,984
Diluted                       24,189,814   23,244,680  23,979,011  23,242,831
________________________                                        
                                                               
(1) In the second quarter of 2013, we incurred $5.7 million of IPO related
expenses: $2.0 million of stock-based compensation related to accelerated
vesting of outstanding stock options, $1.2 million of stock-based compensation
related to stock options granted to our Chief Executive Officer and President
and Chief Operating Officer of which 50% were vested at the time of grant,
$1.7 million of transaction bonuses and related payroll taxes and $800,000 in
transaction payments to our Equity Sponsors.Additionally, the second quarter
of 2013 and 2012 and the first two quarters of 2013 and 2012 each included
$250,000 and $500,000, respectively of management fee expense in accordance
with our management services agreement and through the ClassC common stock
dividend paid to the holder of the one outstanding share of our ClassC common
stock.In connection with our IPO, the management services agreement expired
and the one share of Class C common stock was redeemed.



Noodles& Company
Consolidated Statements of Income as a Percentage of Revenue
(in thousands, unaudited)
                                                                
                                Fiscal Quarter Ended    Two Fiscal Quarters
                                                         Ended
                                July2,      July3,    July2,    July3,
                                 2013         2012       2013       2012
Revenue:                                                         
Restaurant revenue               99.0%       99.0%     99.0%     99.0%
Franchising royalties and fees   1.0         1.0       1.0       1.0
Total revenue                    100.0       100.0     100.0     100.0
Costs and expenses:                                              
Restaurant operating costs
(exclusive of depreciation and                                   
amortization shown separately
below):(1)
Cost of sales                    26.1        26.7      26.3      26.5
Labor                            29.8        29.7      30.3      29.8
Occupancy                        9.7         9.7       10.0      9.9
Other restaurant operating costs 13.1        13.0      13.4      13.4
General and administrative(2)    14.2        8.2       11.7      8.7
Depreciation and amortization    5.6         5.4       5.8       5.4
Pre-opening                      0.9         0.8       1.0       0.8
Asset disposals, closure costs   0.3         0.4       0.3       0.3
and restaurant impairments
Total costs and expenses         99.0        93.1      97.9      94.0
Income from operations           1.0         6.9       2.1       6.0
Interest expense                 1.1         2.0       1.2       1.9
Income (loss) before income      (0.1)      4.9       0.8       4.1
taxes
Provision (benefit) for income   (0.2)      2.0       0.3       1.7
taxes
Net income                       0.1%        2.9%      0.6%      2.4%
________________________                                         
(1) As a percentage of restaurant revenue.
                                                                
(2) In the second quarter of 2013, we incurred $5.7 million of IPO related
expenses; $2.0 million of stock-based compensation related to accelerated
vesting of outstanding stock options, $1.2 million of stock-based compensation
related to stock options granted to our Chief Executive Officer and President
and Chief Operating Officer of which 50% were vested at the time ofthe grant,
$1.7 million of transaction bonuses and related payroll taxes and $800,000 in
transaction payments to our Equity Sponsors.Additionally, the second quarter
of 2013 and 2012 and the first two quarters of 2013 and 2012 each included
$250,000 and $500,000, respectively of management fee expense in accordance
with our management services agreement and through the ClassC common stock
dividend paid to the holder of the one outstanding share of our ClassC common
stock.In connection with our IPO, the management services agreement expired
and the one share of Class C common stock was redeemed.



Noodles& Company
Consolidated Selected Balance Sheet Data and Selected Operating Data
(in thousands, except restaurant activity and comparable restaurant sales,
unaudited)

                               As of
                               July2,   January1,
                                2013      2013
Balance Sheet Data                       
Total current assets            $17,277 $16,154
Total assets                    171,687   156,995
Total current liabilities       24,446    23,760
Total long-term debt            207       94,481
Total liabilities               52,451    142,987
Temporary equity                —         3,601
Total stockholders' equity 119,236   10,407

                              Fiscal Quarter Ended
                              July 2,  April 2, January 1, October 2, July 3,
                               2013     2013     2013       2012       2012
Selected Operating Data                                            
Restaurant Activity:                                               
Company-owned restaurants at   295      284      276        261        253
end of period
Franchise restaurants at end   53       51       51         48         46
of period
Revenue Data:                                                      
Company-owned average unit     $1,184 1,180  1,178    1,175    1,170
volumes
Franchise average unit volumes $1,123 1,121  1,128    1,118    1,107
Company-owned comparable       4.7%     2.2%     4.2%       3.4%       6.8%
restaurant sales
Franchise comparable           2.3%     (1.9)%   2.9%       2.9%       9.0%
restaurant sales
System-wide comparable         4.4%     1.5%     4.0%       3.3%       7.1%
restaurant sales



Reconciliations of Non-GAAP Measurements to US GAAP Results

Noodles& Company
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
(in thousands, unaudited)

                                 Fiscal Quarter Ended   Two Fiscal Quarters
                                                         Ended
                                 July 2,     July 3,    July 2,    July 3,
                                  2013        2012       2013       2012
                                 (in thousands, unaudited)
Net income                        $68       $2,180   $992     $3,471
Depreciation and amortization     5,035       4,099      9,836      7,831
Interest expense                  1,014       1,492      2,067      2,776
Provision (benefit) for income    (145)       1,527      450        2,433
taxes
EBITDA                            $5,972    $9,298   $13,345  $16,511
Asset disposals, closure costs    297         282        498        462
and restaurant impairment
Management fees(a)                250         250        500        500
Stock-based compensation expense  378         297        741        606
IPO related expenses(b)           5,667       —          5,667      —
Adjusted EBITDA                   $12,564   $10,127  $20,751  $18,079
______________________________                                   
                                                                
EBITDA and adjusted EBITDA are supplemental measures of operating performance
that do not represent and should not be considered as alternatives to net
income or cash flow from operations, as determined by USGAAP, and our
calculation thereof may not be comparable to that reported by other companies.
These measures are presented because we believe that investors' understanding
of our performance is enhanced by including these non-GAAP financial measures
as a reasonable basis for evaluating our ongoing results of operations.
EBITDA is calculated as net income before interest expense, provision
(benefit) for income taxes and depreciation and amortization. Adjusted EBITDA
further adjusts EBITDA to reflect the additions and eliminations described in
the table below.
EBITDA and adjusted EBITDA are presented because: (i)we believe they are
useful measures for investors to assess the operating performance of our
business without the effect of non-cash charges such as depreciation and
amortization expenses and asset disposals, closure costs and restaurant
impairments and (ii)we use adjusted EBITDA internally as a benchmark for
certain of our cash incentive plans and to evaluate our operating performance
or compare our performance to that of our competitors. The use of adjusted
EBITDA as a performance measure permits a comparative assessment of our
operating performance relative to our performance based on our USGAAP
results, while isolating the effects of some items that vary from period to
period without any correlation to core operating performance or that vary
widely among similar companies. Companies within our industry exhibit
significant variations with respect to capital structures and cost of capital
(which affect interest expense and income tax rates) and differences in book
depreciation of property, plant and equipment (which affect relative
depreciation expense), including significant differences in the depreciable
lives of similar assets among various companies. Our management believes that
adjusted EBITDA facilitates company-to-company comparisons within our industry
by eliminating some of these foregoing variations. Adjusted EBITDA as
presented may not be comparable to other similarly-titled measures of other
companies, and our presentation of adjusted EBITDA should not be construed as
an inference that our future results will be unaffected by excluded or unusual
items.
(a) The second quarter of 2013 and 2012 and the first two quarters of 2013
and 2012 each included $250,000 and $500,000, respectively of management fee
expense in accordance with our management services agreement and through the
ClassC common stock dividend paid to the holder of the one outstanding share
of our ClassC common stock.In connection with our IPO, the management
services agreement expired and the one share of Class C common stock was
redeemed.
(b) Reflects certain expenses incurred in conjunction with the closing of our
initial public offering.Amount includes $2.0 million of stock-based
compensation related to accelerated vesting of outstanding stock options, $1.2
million of stock-based compensation related to stock options granted to our
Chief Executive Officer and President and Chief Operations Officer of which
50% were vested at grant, $1.7 million of transaction bonuses and related
payroll taxes and $800,000 in transaction payments to our Equity Sponsors.


Noodles& Company
Reconciliation of Net Income to Adjusted Net Income
(in thousands, unaudited)
                                                               
                              Fiscal Quarter Ended    Two Fiscal Quarters
                                                       Ended
                              July2,     July3,     July2,     July3,
                               2013        2012        2013        2012
                              (in thousands, unaudited)
Net income                     $68       $2,180    $992      $3,471
Interest expense as reported   1,014       1,492       2,067       2,776
(a)
Adjusted interest expense
using reduced debt balances    (162)       (162)       (301)       (301)
(b)
Pre-IPO management fees (c)    250         250         500         500
IPO related expenses (d)       5,667       —           5,667       —
Estimated incremental public   (357)       (357)       (714)       (714)
costs (e)
Tax effect of adjustments (f)  (2,514)     (479)       (2,830)     (886)
Adjusted net income            $3,966    $2,924    $5,381    $4,846
                                                               
Adjusted earnings per Class A
and Class B common stock,                                       
combined (g)
Basic                          $0.13     $0.10     $0.18     $0.16
Diluted                        $0.13     $0.10     $0.18     $0.16
Pro forma weighted average
Class A and Class B common                                      
stock outstanding, combined
(g)
Basic                          29,680,395  29,409,598  29,544,997  29,409,598
Diluted                        30,360,428  29,415,294  30,149,625  29,413,445
_____________________________                                   
                                                               
Adjusted net income is a supplemental measure of financial performance that is
not required by, or presented in accordance with, GAAP. We define adjusted net
income as net income plus a net savings in interest expense as a result of the
pay down of debt using IPO proceeds, plus IPO related expenses and pre-IPO
management fees, less estimated incremental costs of being a public company
and the tax effects of these adjustments. Adjusted net income is presented
because management believes it helps convey supplemental information to
investors regarding our performance excluding the impact of the IPO and other
special items that affect the comparability of results in past quarters and
expected in future quarters. Our management uses this non-GAAP financial
measure in order to have comparable financial results to analyze changes in
our underlying business from quarter to quarter.
                                                               
(a) Reflects the adjustment to eliminate the historical interest expense for
all periods presented that were based upon actual outstanding balances before
the application of the net proceeds from our IPO.
(b) Reflects interest expense assuming no term loan balance and daily
balances outstanding on our revolver adjusted for the repayment of the
revolver down to $0.2 million.This balance reflects $100.2 million repayment
of both term and revolving debt from the net proceeds of our IPO.The interest
adjustment is based on the following assumptions:
(1) Unused facility fees based on the daily revolver balances
(2) Lower annual amortization of deferred loan costs due to the repayment of
the term loan
(c) Reflects the elimination of the management fees and Class C common stock
dividend paid to our sponsors for the periods presented.
(d) Reflects certain expenses incurred in conjunction with the closing of our
initial public offering.The adjustment includes $2.0 million of stock-based
compensation related to accelerated vesting of outstanding stock options, $1.2
million of stock-based compensation related to stock options granted to our
Chief Executive Officer and President and Chief Operating Officer of which 50%
were vested at grant, $1.7 million of transaction bonuses and related payroll
taxes and $800,000 in transaction payments to our Equity Sponsors.
(e) Reflects an adjustment of recurring incremental legal, accounting,
insurance and other compliance costs we expect to incur as a public company.
By its nature, this adjustment involves risks and uncertainties, and the
actual costs incurred could be different than this adjustment.
(f) Reflects the tax expense associated with the adjustments in a through e
above at the normalized tax rate of 39.2%, which reflects our estimated
long-term effective tax rate.
(g) Reflects weighted average shares outstanding as if all shares sold in our
IPO were outstanding as of the first day of our fiscal year.Adjusted per
share amounts are calculated by dividing adjusted net income by the adjusted
basic and diluted weighted average shares outstanding.

CONTACT: Investor Relations
         investorrelations@noodles.com
        
         Media
         Liz DiTrapano
         (646) 277-1226
         press@noodles.com